In Australian educational policy debate, advocacy of choice and diversity has come to be linked to support for educational markets and therefore with educational reform and restructuring associated with 'economic rationalism'. Choice and diversity are better conceived within a framework of democratic educational philosophy and policy and in Australian educational policy development this was the case until the arrival of economic rationalism. Critics of 'choice' in the economic rationalist market context are mistaken to oppose choice as such. The focus should be on the relationship between choice and basic educational values such as participation, experiment and quality of provision. For these values to be realised in a mutually enhancing way, education systems need to promote sets of real options for students and families. 'Choice' is a secondary, or derivative, concept that emerges within this ethical, political and professional context. Markets are one, and only one, method for achieving educational participation, diversity and quality, and are not to be simplistically conflated with advocacy of quality and equity, diversity and choice.